Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Commitments and Contingencies

N. Commitments and Contingencies

Purchase Commitments

As of June 30, 2013, Teradyne had entered into purchase commitments for certain components and materials. The purchase commitments aggregate to approximately $265.0 million, of which $261.7 million is for less than one year.

Legal Claims

Teradyne is subject to various legal proceedings and claims which have arisen in the ordinary course of business. In the opinion of management, other than set forth herein, the ultimate disposition of these matters will not have a material adverse effect on Teradyne’s results of operations, financial condition or cash flows.

On May 17, 2013, Boston Semi Equipment (“BSE”) filed a complaint against Teradyne for antitrust violations and unfair business practices alleging that Teradyne is excluding BSE from competing in the market for the sale of reconfigured Teradyne equipment and the market for the repair of Teradyne equipment. BSE seeks unspecified damages and an injunction. Teradyne has filed a motion to dismiss the complaint. Teradyne believes it has meritorious defenses against this claim and intends to vigorously defend against it. While it is not possible to predict or determine the outcomes of the unsettled claims or to provide possible ranges of losses that may arise, Teradyne believes the potential losses associated with this action are unlikely to have a material adverse effect on its consolidated financial position, but could possibly be material to its consolidated results of operations and of cash flows of any one period.